Malaysian Natural Rubber Market Model
This study is an attempt to formulate a simultaneous equations model of the Malaysian natural rubber market. The regression results suggest that the model is quite satisfactory in terms of correct signs, high R 2, and significance of variables concerned. A simulation exercise was done to ascertain...
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| Format: | Article |
| Language: | English English |
| Published: |
1988
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| Online Access: | http://psasir.upm.edu.my/id/eprint/2629/ http://psasir.upm.edu.my/id/eprint/2629/1/Malaysian_Natural_Rubber_Market_Model.pdf |
| Summary: | This study is an attempt to formulate a simultaneous equations model of the Malaysian natural
rubber market. The regression results suggest that the model is quite satisfactory in terms of correct
signs, high R 2, and significance of variables concerned. A simulation exercise was done to ascertain the
adequacy of the model in tracking the actual values. It was found that, in general, the model has the
ability to trace, at least, the directions of the movements of certain selected endogenous variables. The
model developed here could be used to forecast the effect of a change in an endogenous variable, such as
export duty, exchange rates, or recession on endogenous variables. |
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